Employee appraisal systems help managers evaluate employee job performance and

develop a fair system of pay increases and promotions. Appraisals in turn can help staff
members improve performance, and assist companies in devising or reorganizing job
functions to better fit the position or the employee. In addition, employee appraisals may
reveal outdated or inefficient business practices. Effective employee appraisal systems
incorporate goals to help improve the employer as well as the employee, through the
application of appropriate and timely feedback and training.